Steel and ferro alloy industries in Bengal seek immediate CM intervention over 30% electricity rate hike by DVC

West Bengal’s steel and ferro alloy industries have raised concerns over a significant increase in electricity tariffs imposed by the Damodar Valley Corporation (DVC). Industry associations have appealed to Chief Minister Mamata Banerjee for immediate intervention to address the steep rise in electricity rates, warning of possible shutdowns of several units if the hike remains in effect.

The West Bengal Electricity Regulatory Commission (WBERC) has approved a new electricity rate of ₹4.64 per unit for the year 2025–26 for consumers under DVC. In addition, an extra charge of ₹1.36 per unit is being levied to recover dues accumulated between 2014 and 2020. With these charges, the total effective tariff amounts to ₹6 per unit.

Besides the base rate and dues recovery, the DVC is also imposing additional fees, including the Energy Charge Rate (ECR) and Monthly Variable Cost Adjustment (MVCA), which collectively add approximately ₹0.50 per unit. This brings the overall electricity cost to ₹6.80 per unit, representing a 30 percent increase compared to earlier rates.

Industry groups have pointed out a discrepancy between electricity tariffs in West Bengal and neighboring Jharkhand, where DVC charges only ₹4.42 per unit. They have requested that the ₹1.36 per unit dues be collected in installments over six years to avoid a sudden tariff shock for the industrial consumers.

The associations have further demanded a forensic audit of the ECR and MVCA charges applied since 2017–18 and have requested a temporary suspension of these charges until the audit is completed. This demand aims to ensure transparency in additional costs levied on consumers.

West Bengal is the second-largest producer of secondary steel, ferro alloys, pig iron, and pellets in India, and the third-largest producer of sponge iron. The industry associations have emphasized the economic significance of these sectors and requested the state government to facilitate negotiations between DVC and WBERC to resolve the electricity tariff issues promptly.c